Projects Vs. LCM

Question

Hi all,
We are implementing LCM (a new module introduced in R12.1.1) here.
Now, while issuing PO for a project with destination type="Expense"
the system is popping up a message that you cannot create a PO with destination type as Expense for an LCM enabled Organization.
Also, we are not able to raise PO with destination type ="Inventory"
as we are not implementing Project Manufacturing module.
Pls suggest some workarounds.

Answer 1

Hi
Landed Cost Management (LCM) supports PO receipts with destination Inventory, for Inventory organizations which are classified to support this new feature.
For items received into Inventory the costing will be affected by the additional ocsts incured in landing the goods into stock.
By design, the LCM feature is not applicable to Expense destination PO receipts.
If you are not using Project Manufacturing, then your purchase orders will be for general stock. The LCM will afect the items costs in Inventory, and may affect the average costs. I assume that later on, if you issue such item to a project, the item cost will include the landed costs, and not only the PO unit price.
Dina